Santos to upgrade Pilliga Forest CSG project

Mining giant Santos says it will scale back CSG operations at the Pilliga State Forest while it spends $20 million to improve its facilities

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TICKY FULLERTON, PRESENTER: In NSW, the mining giant Santos says it will scale back coal seam gas operations in the Pilliga State Forest while it spends at least $20 million bringing them up to scratch.

The company purchased the wells from Eastern Star Gas last year. In January it was revealed the previous owners had not reported a spill of 10,000 litres of waste water.

Santos has given the Government a report that says there was at least one other significant spill and unacceptable environmental practices under Eastern Star Gas.

Earlier this month environmentalists carried out tests on the spill site which found high levels of arsenic, cadmium and chromium.

JAMES BAULDERSTONE, SANTOS VICE PRESIDENT: We've now done extensive soil testing in the impacted area and it shows low levels of naturally occurring trace elements which are well within all forms of health and safety guidelines.

TICKY FULLERTON: The company says salt levels at the spill area have killed trees in a small area which it will replant.